http://www.nolo.com/legal-encyclopedia/article-29675.html

^^This website was exactly what I was looking for and it may help you too if you are lacking a lawyer!

http://www.nolo.com/legal-encyclopedia/article-29675.html

^^This website was exactly what I was looking for and it may help you too if you are lacking a lawyer!

First of all, congratulations on your endeavor!

As a single member LLC , you are what the IRS considers a "disinterested entity" . In other words, even if you have a separate tax id number for banking purposes etc, your net income will ultimately end up on your year end tax return much the same as a dba. While you may have expenses that you can write off on your schedule C as a sole proprietor, you will still be taxed on the net income of the companyo. Depending on the revenue you expect to generate, you can probably check with your CPA for a good benchmark to set aside.
Since you are not a corporation, you needn't have single business tax etc. unless you elect to be treated as a corporation. It does have a different tax structure.

With respect to employees, it is important that you determine if they are actual employees or independent contractors. Are they strictly commission or a combination of salary and commission? If they are employees, you would be responsible for the FICA and FUTA, SUTA tax payments for your area. You also may be liable for Workmen's Comp and other expenses such as benefits, etc. As independent contractors, you would issue a 1099 to them at year end and eliminate a lot of tax burdens normally associated with corporations and employees. Depending on how successful your venture is, you may want to see if it would be better to change corporate structure down the road.

What type of business do you have?

First of all, congratulations on your endeavor!

As a single member LLC , you are what the IRS considers a "disinterested entity" . In other words, even if you have a separate tax id number for banking purposes etc, your net income will ultimately end up on your year end tax return much the same as a dba. While you may have expenses that you can write off on your schedule C as a sole proprietor, you will still be taxed on the net income of the companyo. Depending on the revenue you expect to generate, you can probably check with your CPA for a good benchmark to set aside.
Since you are not a corporation, you needn't have single business tax etc. unless you elect to be treated as a corporation. It does have a different tax structure.

With respect to employees, it is important that you determine if they are actual employees or independent contractors. Are they strictly commission or a combination of salary and commission? If they are employees, you would be responsible for the FICA and FUTA, SUTA tax payments for your area. You also may be liable for Workmen's Comp and other expenses such as benefits, etc. As independent contractors, you would issue a 1099 to them at year end and eliminate a lot of tax burdens normally associated with corporations and employees. Depending on how successful your venture is, you may want to see if it would be better to change corporate structure down the road.

What type of business do you have?

Carina, had some good advice except the term is "disregarded entity" and you do have a choice how you file your taxes as an LLC. You can choose to file as a Sole Proprietorship, but you can also choose to be taxed as an S-corporation or a C-corporation. There are pros and cons to all three tax structures and you would be advised to contact a tax professional to discuss you particular situation.

Carina, had some good advice except the term is "disregarded entity" and you do have a choice how you file your taxes as an LLC. You can choose to file as a Sole Proprietorship, but you can also choose to be taxed as an S-corporation or a C-corporation. There are pros and cons to all three tax structures and you would be advised to contact a tax professional to discuss you particular situation.

Wray, my bad....thanks for the correction!

Wray, my bad....thanks for the correction!